China Morning Snapshot – 19 January 2021

Dalian Commodity Exchange for both PP and PE poses range-bound trend throughout the morning session. 

Details on the spot and futures prices are shown in the following table:

Total inventories at Sinopec and CNPC’s warehouses digested 55,000 tons in the previous trading day to 570,000 tons as of 19 January 2021. (Correction: Total stocks were at 625,000 tons on 18 January 2021. The previous Snapshot reported at 635,000 tons.)

The domestic spot market remains active on the second trading day of the week, though sources said that sentiment has dimmed slightly compared to the previous day. Buyers are a bit shy over the fresh price increases but would still purchase the needed quantities after discounts.

There is mixed information on holiday schedules among Chinese manufacturers. While export-oriented manufacturers are still having a good number of orders that allow them to operate well closer to the Lunar New Year holiday, many local converters would start to let workers going off soon because of the lack of end product businesses.